Sullivan & Cromwell partner Jay Clayton, President-elect
Donald Trumps pick to chair the Securities and Exchange
Commission, is not a longtime supporter of Trump but was drawn
to the job because he passionately believes the current
regulatory environment is burdening American companies with
unnecessary rules and hindering economic growth, a source close
to the veteran Wall Street lawyer says.

Clayton is expected to roll back at least some of the rules
and regulations enacted under current chair Mary Jo White if he
is confirmed. The attorney has a long history on Wall Street,
working on high-profile deals that included Barclays
Capitals purchase of Lehman Brothers and Berkshire
Hathaways investment in Goldman Sachs. Both transactions
were done during the height the financial crisis.

The source says Clayton is an idealist who believes that the
costs of complying with many of the regulations enacted since
the financial crisis are brutal. At the same time,
the source says, Clayton doesnt plan to tear
everything down and make it regulation-free. In a
statement when the nominee was announced, Trump said, He
will ensure our financial institutions can thrive and create
jobs while playing by the rules at the same time.

Claytons wife Gretchen is a wealth manager at Goldman.
Although its expected that his wifes Goldman
affiliation will be raised during the confirmation process,
industry executives emphasize that her wealth advisory position
has nothing to do with decision-making at the firm as a
whole.

Clayton, who lives in Manhattans Tribeca neighborhood
with his wife and three children, contrasts starkly with Trump,
who won the election after a contentious campaign that divided
the country. Hes modest, understated, even keeled,
open minded, not dogmatic, says the source, who has known
him for 20 years.

Although Clayton would arguably bring much-needed financial
experience to his role as one of the countrys most
influential financial regulators, the lawyer is one of several
Trump nominees who are being criticized for their ties to Wall
Street  including Gary Cohn, chief operating officer and
president of Goldman and Trumps pick to head the National Economic Council. At Sullivan
& Cromwell, Clayton focused on mergers and acquisitions,
capital markets, regulatory and enforcement proceedings, and
advising wealthy families on their investments.

An allocation to international bonds exposes Target Retirement Fund investors to an asset class thats not only influenced by different interest rate and inflation dynamics than U.S. bonds, but which also provides a larger opportunity set of credits.